Bank Of China S’pore Reportedly Stops Financing Russian Deals Due To Worries Over Sanctions

Bank Of China In Singapore Stops Financing Russian Oil Trades

Countries all around the world have continued to enforce financial sanctions against Russia amidst the devastating invasion of Ukraine.

As a result of the numerous sanctions against Russia, Bank of China’s Singapore operations have reportedly stopped financing deals with Russian oil and Russian companies.

Source

This update comes after the removal of Russia from the SWIFT Global Payment System, impacting Russia’s position in the international financial system.

Bank of China stops Singapore operations with Russia

According to Reuters, there are concerns about the Western sanctions on Russia following the invasion of Ukraine.

The Straits Times reported that oil supplies can be expected to be hit severely in light of the recent sanctions. The economy has taken a significant hit and will continue to deteriorate in the upcoming weeks.

Due to these overwhelming concerns, Bank of China’s Singapore operations have stopped financing deals involving Russian companies and Russian oil.

Countries impose sanctions against Russian banks

In light of Russia’s invasion of Ukraine, an extensive list of several countries has imposed economic sanctions against Russia, such as the United States, Australia, Japan, and Taiwan.

The West has also voted to remove Russia from the SWIFT global payment system. The SWIFT international payment system facilitates payments between financial institutions across the globe.

 

Reuters also reported that the numerous economic sanctions and limitations imposed on Russia had affected the Russian economy.

Major buyers of Russian oil are now having trouble opening letters of credit from Western banks to cover purchases or finding ships willing to transport Russian oil.

More consequences against Russia to be expected

The numerous economic measures against Russia is just one of the many consequences of Russia’s continuing invasion of Ukraine.

The Bank of China halting Singapore’s operations with Russian deals is just one example of these measures. Other banks like the Societe Generale SA and Credit Suisse Group AG have also imposed measures against Russian companies.

The fallout from these economic sanctions against Russia can be expected to reach far and wide in such precarious times.

While the extent of these measures on the international economy is uncertain for now, we can only hope the potential deterioration is as contained as possible.

Have news you must share? Get in touch with us via email at news@mustsharenews.com.

Featured image adapted from Shenton Wire and NDTV.

Sudeshna Dhar

Sudeshna is a lover of all romcoms, especially Gone Girl (2014).

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